Using the Net Present Value (NPV) in Financial Analysis
The Net Present Value (NPV) is a profitability measure we use to figure out the present value of all expected future cash flows a project or investment will generate, including the initial capital we invest. It shows us the difference between the current value of cash inflows and outflows over a period. Net Present Value […]
The Discounted Cash Flow (DCF) Valuation Method
Today we are looking at how the Discounted Cash Flow (DCF) method is used to evaluate investment opportunities or project alternatives in big companies, like launching a new product, a new assembly line, etc. We can use the DCF method whenever we consider paying now to get more money (or benefits) later. Investors and Investment […]